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Danish for All? Balancing Flexibility with Security; The Flexicurity Model

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  • Jianping Zhou

Abstract

The Danish flexicurity model has attracted attention among policymakers in Europe, because it suggests that a flexible labor market can coexist with a generous welfare system to achieve low unemployment. Using a panel of 19 countries over 1960-2002, the paper identifies the elements of the flexicurity model that may have contributed to the low unemployment rate. A theoretical model of dynamic policies is constructed to analyze whether the model can be emulated by other countries. Focusing on the financing aspect, the paper finds that effective implementation will depend on the initial unemployment level and budgetary situation of the country.

Suggested Citation

  • Jianping Zhou, 2007. "Danish for All? Balancing Flexibility with Security; The Flexicurity Model," IMF Working Papers 07/36, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:07/36
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    References listed on IDEAS

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    1. Blanchard, Olivier & Wolfers, Justin, 2000. "The Role of Shocks and Institutions in the Rise of European Unemployment: The Aggregate Evidence," Economic Journal, Royal Economic Society, vol. 110(462), pages 1-33, March.
    2. Jianping Zhou, 2006. "Reforming Employment Protection Legislation in France," IMF Working Papers 06/108, International Monetary Fund.
    3. André Sapir, 2006. "Globalization and the Reform of European Social Models," Journal of Common Market Studies, Wiley Blackwell, vol. 44(2), pages 369-390, June.
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    Cited by:

    1. Brown, Alessio J. G. & Snower, Dennis J., 2009. "Incentives and complementarities of flexicurity," Kiel Working Papers 1526, Kiel Institute for the World Economy (IfW).
    2. Massimiliano Agovino & Agnese Rapposelli, 2016. "Does flexicurity promote the employment of disabled people? A panel analysis for Italian regional data," Quality & Quantity: International Journal of Methodology, Springer, vol. 50(5), pages 2085-2105, September.
    3. Ayolt J. De Groot & J. Paul Elhorst, 2010. "Labour Market Effects Of Flexicurity From A Regional Perspective," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 101(4), pages 392-408, September.
    4. Nikos Koutsiaras, 2010. "How to Spend it: Putting a Labour Market Modernization Fund in Place of the European Globalization Adjustment Fund," Journal of Common Market Studies, Wiley Blackwell, vol. 48, pages 617-640, June.

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